Internet cafés not as harmless as they look

But make no mistake, Internet cafés strategically located in or near lower-income areas of Ohio communities can rake in big bucks from what many see as clear illegal and unregulated gambling.

There's so much money, in fact, that industry lobbyists gave Ohio lawmakers $110,000 in donations in 2012 alone to help stem the tide against new regulations or an outright ban, according to published reports.

One Chillicothe cafe reported losing $2.47 million in profits from being closed 173 days, according to a lawsuit filing. And Ohio Attorney General Mike DeWine cites a Massachusetts report claiming each café can net $1 million to $3 million per year in profit.

These cafés sell Internet time or phone cards that customers use to bet points on computers loaded with games. Players cash out the points for money or prizes, although it's clear only the lucky ones walk out with more cash. It's akin to playing slots at one of Ohio's four new casinos.

Many see these businesses as a place for people to gather and have fun. They argue people should be allowed to spend their money as they see fit. They see jobs being created and successful businesses turning a profit.

Those points are fair, but they ignore the larger issues at stake.

DeWine and law enforcement officials continue to look at the dark side of these cafés after raids recently in northern Ohio, including currently unproven allegations of money laundering.

They shared their initial findings privately with Ohio Senate Republicans this past week, prompting a quick about-face from some, including Senate President Keith Faber, R-Celina. Not only will Faber now allow the Senate to consider a House bill setting maximum payments to $10, he's urging all Republicans to return any donations from lobbyists representing cafés.

"I am convinced that these entities are not only illegal, but many of them also engage in criminal activities within their facilities," Faber said Wednesday.

At the least, Ohio needs airtight regulation of these gambling operations, much in the same way the new voter-approved casinos are closely watched to ensure fairness in the games. Lawmakers also must prevent the industry from shifting gears into a new business model like what happened when skill games were regulated.

But a strong case can be made for an outright ban, especially if criminal activity can be proved.

After years of saying no, Ohio voters agreed to allow limited gambling at four now open casinos, with lawmakers also allowing several horse tracks to open racinos. Anyone who wants to gamble in our state does not have to travel far.

This is not about protecting free enterprise. There are plenty of ways to make a legal dollar. It's about protecting our communities from crime. It's about stopping big business from preying on the poorest among us.